Tax-Free Retirement

Recently, I had coffee with a husband and wife in their fifties. They were worried. They had no life insurance or retirement plan. They both have excellent incomes, but they are both dependent on the other for income and concerned about the future—long-term care, income taxes, and the unknown. They purchased an Index Universal Life policy with the intent to pay the maximum premiums allowed for the next 10 years. At that time they will possess a fully-paid policy and no premiums. The policy will contain significant cash values. They can use that cash value to provide tax-free retirement income as well a fully paid for life insurance policy that will not expire. Plus, if one of them needs long-term care, there is a rider to the policy that will take care of that from the value as well.